The Most Profitable Forex Chart Patterns
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The Most Profitable Forex Chart Patterns

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For many reasons, forex charts usually obey some patterns. If ...

For many reasons, forex charts usually obey some patterns. If
you work with them and your eyes get familiar with them, these
patterns are very powerful tools to guide you during your
trades. There are many patterns and each of them has its name
but to be simple and short I explain here only the most proven
patterns which always work and you can rely on.

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The Most Profitable Forex Chart Patterns The Most Profitable Forex Chart Patterns Document Transcript

  • The Most Profitable Forex Chart PatternsFor many reasons, forex charts usually obey some patterns.If you work with them and your eyes get familiar with them,these patterns are very powerful tools to guide you duringyour trades. There are many patterns and each of them hasits name but to be simple and short I explain here only themost proven patterns which always work and you can rely on.3-1 M and W (Bat) PatternsThese are the most frequent chart patterns and more or lesshave M or W shapes. Sometimes, one leg extends or anotherleg gets short. These are not very accurate signals butthey help you to get a rough estimation of a currency move.3-2 Weakening M and Strengthening W (Triangle) PatternsIn contrast to M and W patterns, weakening M andstrengthening W patterns are very accurate signals. Aweakening M occurs when an upward (bullish) move iscompleted, then a weaker downward move (one third or halfof the first move) forms and then a very weak (usually onecandle) bullish follows it. After completion of the thirdmove you can say with a high confidence that the currencyprice will sharply drop. This is the point you should sellthe currency and gain a nice profit. Strengthening Wpattern has just the same story but in a reverse order. Ilove triangle patterns because they are very strong signalsand nearly always are correct.3-3 Weakening Upward or Downward (Cascade) PatternsThese are in fact upward or downward moves that get weakenduring the time. For example, an upward move starts withthree bullish candles, then continues by one bearishcandle, then two bullish and again one bearish and henceforth. It is obvious that the move gets weaken and thentends to reverse (a major or minor reversal depends on thesupport/resistance type, for example if a weakening upwardcascade reaches a major resistance level it is highlyexpected to go for a big reversal). These patterns aretradable in two forms. The first is at the time when only
  • the first few bullish or bearish candles have formed andthe move is in its half way to get matured (reach a supportor resistance level). At this time we can buy or sell andwait until the move ends, then close the trade with profit.However, these are short or medium range moves and we cannot expect so much pips. The second better use is at thetime when a move gets matured and a reversal is imminent.We can take this opportunity and trade. I also likeweakening cascades because they are very reliable andstable signals.3-4 J or Reverse J PatternsThese patterns form when a move starts with very dwarf bodycandles and during the time the candles get taller and themove escalates. In these patterns the candles are usuallyuniform (full bullish in upward or full bearish in downwardmoves). The start of such patterns are usually from astrong support or resistance and they are profitable if thetrader recognize them at the very early stages. If theygrabbed in time, they are very reliable and profitable.3-5 FractalsFractals in general are regularly repeated shapes invarious scales. Fractals occur in forex charts and are veryvarious in in both shape and size. If a fractal is detectedin the early stages (when the first or second fractal hasshaped), the trader can trade on it. Trading fractals needsmuch experience and many forex professionals use them intheir advantage.You can get an amazing Forex trading system for free from the below address.With an amazing 90% profitable trade rate, the system has proven itself duringthe time. The system is full of rare, top secret tips and strategies that only 1% ofForex traders know them. I earn constantly 3200 pips a month using this system. Itis so easy that you can do indeed. This offer is only valid for a short time. So, justdont miss this one time in a life opportunity.Get the system for FREE here: http://thebestforexsystem.tumblr.com/